70% of British business in Spain set to go bust

Spain’s unemployment figures  rocket for August and business experts predict 70% of British owned businesses on Spain’s Costa del Sol & Costa Blanca will go bust before April 2021

The number of registered unemployed residents in Spain rose in August as new outbreaks of the coronavirus and travel restrictions imposed by other countries began taking a toll after months of shy recovery from the  State Of Emergency earlier in the year.

The numbers of unemployed people rose by 0.79% in August, rising up the national total to 3.80 million and ending a positive trend that began in May when Spain began emerging from a hard lockdown period.

The heavily tourism-dependent Balearic Islands were the hardest hit region, registering a 3% rise in unemployment.

The pace of job creation in Spain fell in August, with only 6,822 more people with a formal working contract and contributing to social security in that month, compared to an increase of 161,000 in July, the social security minister said today.

In total, Spain had about 740,000 more jobless people in August than in the same month just 12 months ago. The lockdown prompted by the coronavirus erased some 900,000 jobs in March alone.

After the three-month lockdown ended in late June, Spain’s economy gradually revived in July but new outbreaks of the coronavirus and travel restrictions imposed by various European countries have ravaged the crucial tourism season.

Spending on unemployment benefits fell to 3.2 billion euros in July, according to the last data available.

“The travel restrictions by European countries have had an impact on unemployment data,” Secretary of State for Employment Joaquín Pérez Rey told a news conference, with almost all the new jobless focused on the service sector.

Meanwhile, forensic accountant Samish Kumar, based in Spain’s Marbella warned today that he forecasts 70 percent of British owned businesses will not survive by April 2021 following from the knock on effect.

He told Global247news: ” With winter tourism basically cancelled, those from various sectors will see the knock on effect and won’t reach the financial quarter of April 2021, It’s going to be a vicious circle for all businesses that rely on business coming from Spain, many sectors of industry will become un operational simply down to lack of circulating business”

“One of my clients has already cancelled for example a 120k a year marketing package, with another client set to to the same”

“There is no point them marketing their services when there is no custom and the cycle starts, the 30 percent who are not dependent on tourism will be ok, but the reality is 70% are dependent on the tourism cycle,” he said.

 

 


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